Banque Saudi Fransi reports 10 per cent earnings drop

Banque Saudi Fransi has reported a decline in net profit of nearly 10 per cent for the year to 31 December 2007, dropping to SR2.7bn ($720m) from SR3.01bn ($803m), which the bank attributed to declining stock market activity.

The bank said that excluding the decline in its brokerage business the rest of the bank's core business had recorded an increase of 14 per cent in operating income compared to the previous year.

Special commission revenue, including foreign exchange trading, dividend income from investments and other investment income rose 45 per cent compared to 2006. Customer deposits rose to SR74bn ($19.7bn) at the end of 2007, up 19 per cent, and the bank's loan portfo expanded by 17 per cent SR59.8bn ($16bn). Operating expenses rose by 6 per cent.

Jean Marion, managing director of the bank said that in 2008 anumber of new subsidiaries, including Fransi Tadawul, Allianz Suaid Fransi and Calyon Saudi Fransi would be launched.